History of Philippine Money

Pre-Hispanic Era
Long before the Spaniards came to the Philippines in 1521, the Filipinos had
established trade relations with neighboring lands like China, Java, Borneo, Thailand
and other settlements. Barter was a system of trading commonly practiced
throughout the world and adopted by the Philippines. The inconvenience of the
barter system led to the adoption of a specific medium of exchange the cowry
shells. Cowries produced in gold, jade, quartz and wood became the most common
and acceptable form of money through many centuries.
The Philippines is naturally rich in gold. It was used in ancient times for barter rings,
personal adornment, jewelry, and the first local form of coinage called Piloncitos.
These had a flat base that bore an embossed inscription of the letters MA or M
similar to the Javanese script of the 11th century. It is believed that this inscription
was the name by which the Philippines was known to Chinese traders during the
pre-Spanish time.
Barter rings made from pure gold, were hand fashioned by early Filipinos during the
11th and the 14th centuries. These were used in trading with the Chinese and other
neighboring countries together with the metal gongs and other ornaments made of
gold, silver and copper.

Spanish Era
1521-1897
The cobs or macuquinas of colonial mints were the earliest coins brought in by the
galleons from Mexico and other Spanish colonies. These silver coins usually bore a
cross on one side and the Spanish royal coat-of-arms on the other.
The Spanish dos mundos were circulated extensively not only in the Philippines
but the world over from 1732-1772. Treasured for its beauty of design, the coin
features twin crowned globes representing Spanish rule over the Old and the New
World, hence the name two worlds. It is also known as the Mexican Pillar Dollar
or the Columnarias due to the two columns flanking the globes.
Due to the shortage of fractional coins, the barrillas, were struck in the Philippines
by order of the Spanish government. These were the first crude copper or bronze
coins locally produced in the Philippines. The Filipino term barya, referring to small
change, had its origin in barrilla.
In the early part of the 19th century, most of the Spanish colonies in Central and
South America revolted and declared independence from Spain. They issued silver
coins bearing revolutionary slogans and symbols which reached the Philippines. The
Spanish government officials in the islands were fearful that the seditious markings
would incite Filipinos to rebellion. Thus they removed the inscriptions by counter
stamping the coins with the word F7 or YII. Silver coins with the profile of young
Alfonso XIII were the last coins minted in Spain. The pesos fuertes, issued by the
countrys first bank, the El Banco Espaol Filipino de Isabel II, were the first paper
money circulated in the Philippines.

Revolutionary Period
1898-1899
General Emilio Aguinaldo, the first Philippine president, was vested with the
authority to produce currencies under the Malolos Constitution of 1898. At the
Malolos arsenal, two types of two-centavo copper coins were struck. Revolutionary
banknotes were printed in denominations of 1,5 and 10 Pesos. These were
handsigned by Pedro Paterno, Mariano Limjap and Telesforo Chuidian. With the
surrender of General Aguinaldo to the Americans, the currencies were withdrawn
from circulation and declared illegal currency.

American Period
1900-1941
With the coming of the Americans 1898, modern banking, currency and credit
systems were instituted making the Philippines one of the most prosperous
countries in East Asia. The monetary system for the Philippines was based on gold
and pegged the Philippine peso to the American dollar at the ratio of 2:1. The US
Congress approved the Coinage Act for the Philippines in 1903.
The coins issued under the system bore the designs of Filipino engraver and artist,
Melecio Figueroa. Coins in denomination of one-half centavo to one peso were
minted. The renaming of El Banco Espanol Filipino to Bank of the Philippine Islands
in 1912 paved the way for the use of English from Spanish in all notes and coins
issued up to 1933. Beginning May 1918, treasury certificates replaced the silver
certificates series, and a one-peso note was added.

The Japanese Occupation

1942-1945
The outbreak of World War II caused serious disturbances in the Philippine monetary
system. Two kinds of notes circulated in the country during this period. The
Japanese Occupation Forces issued war notes in big denominations. Provinces and
municipalities, on the other hand, issued their own guerrilla notes or resistance

currencies, most of which were sanctioned by the Philippine government in-exile,

and partially redeemed after the war.

The Philippine Republic

A nation in command of its destiny is the message reflected in the evolution of
Philippine money under the Philippine Republic. Having gained independence from
the United States following the end of World War II, the country used as currency old
treasury certificates overprinted with the word "Victory".
With the establishment of the Central Bank of the Philippines in 1949, the first
currencies issued were the English series notes printed by the Thomas de la Rue &
Co., Ltd. in England and the coins minted at the US Bureau of Mint. The Filipinization
of the Republic coins and paper money began in the late 60's and is carried through
to the present. In the 70's, the Ang Bagong Lipunan (ABL) series notes were
circulated, which were printed at the Security Printing Plant starting 1978. A new
wave of change swept through the Philippine coinage system with the flora and
fauna coins initially issued in 1983. These series featured national heroes and
species of flora and fauna. The new design series of banknotes issued in 1985
replaced the ABL series. Ten years later, a new set of coins and notes were issued
carrying the logo of the Bangko Sentral ng Pilipinas.
As the repository and custodian of country's numismatic heritage, the Museo ng
Bangko Sentral ng Pilipinas collects, studies and preserves coins, paper notes,
medals, artifacts and monetary items found in the Philippines during the different
historical periods. It features a visual narration of the development of the Philippine
economy parallel to the evolution of its currency.

Reference:
http://bsp-gov.ph/history_currency.html